Reduced costs indicate how much the objective coefficient of a decision variable that is currently 0 or at its upper bound must change before that the value of that variable changes.

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Reduced costs, in the context of linear programming, specifically indicate the amount by which the cost coefficient of a non-basic variable (a variable at its lower bound of 0 or upper bound) must increase or decrease before that variable enters the basis (becomes positive or moves away from its bound), thus affecting the optimal solution.

Reduced Costs Indicate How Much the Objective Coefficient of a Decision